Edelweiss Financial Services (EDELWEISS) investor relations material

Financial performance highlights

• Consolidated profit after tax rose 37% YoY to ₹547 Cr, while net debt decreased 7% to ₹10,430 Cr, and book value per share reached ₹49.

• Operating business PAT grew 2.5x since FY20, with a 10x increase in consolidated PAT and a one-third reduction in net debt over six years.

• Customer reach expanded 31% YoY to 14 million, with significant growth in mutual fund folios and general insurance customers.

• Asset management, mutual fund, insurance, and housing finance businesses all delivered strong CAGR in AUM, premiums, and disbursements from FY20 to FY26.

• Strategic investments by WestBridge and Carlyle were completed, and the Edelweiss Alternatives IPO is on track for Q3FY27.

Business transformation and strategy

• Systematic de-risking of the NBFC reduced net debt and wholesale book by 90% since 2019, strengthening the balance sheet.

• Operating businesses compounded steadily through the credit cycle, with alternative asset management AUM up 4x and mutual fund equity AUM up 12x since FY20.

• The group pivoted to a capital-light, asset-light model, focusing on sustainable, efficient growth.

• PAT growth was driven by robust, predictable operating business earnings, expected to grow at 20-25% CAGR.

• Intrinsic value of operating businesses grew at a 15% CAGR, with a total value of ₹37,100 Cr in FY26.

Long-term value creation

• Capital allocation is guided by intrinsic value, aiming for 15-20% CAGR in intrinsic value over the next five years.

• Strategic scale-up investments may impact near-term PAT but are expected to build lasting value.

• The business model emphasizes systematic, intentional, and patient growth, positioning for long-term compounding.

• Focus remains on capital-efficient growth, with operating business PAT and intrinsic value as key metrics.